On January 1, 2018 Axe Company purchased of 20% of Lax Company’s ordinary shares outstanding for 6 000 000. The acquisition cost is equal to carrying amount of the net assets acquired. During 2018 the investee  reported net income of 7 000 000 and paid cash dividend of 4 000 000.             What is the balance in investment on December 31, 2018?

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.